NEW YORK, Sept. 15 (Reuters) – DoorDash Inc (DASH.N) sued New York City on Wednesday over a new law requiring food delivery companies to share customer data with restaurants, claiming that it violates the privacy of customers and allows restaurants to compete unfairly.
The lawsuit is the latest battle in a series of legal clashes between food delivery app companies and cities.
It was filed in federal court in Manhattan six days after DoorDash, Grubhub Inc and Uber Eats (UBER.N) sued the most populous city in the United States over a separate law capping the fees delivery companies charge. to restaurants. Read more
“The law puts consumers first,” Nicholas Paolucci, spokesperson for the city’s legal department, said in an email. “It gives them control over their information when they place orders through these apps.”
New York City has tried since the coronavirus pandemic began helping restaurants that had complained about food delivery app fees of up to 30%, but have become more dependent on delivery as they go. that the dining rooms were closed or of limited capacity.
About 90,000 restaurants nationwide have closed temporarily or permanently during the pandemic, costing 1.5 million jobs, the National Restaurant Association said in June.
In Wednesday’s lawsuit, San Francisco-based DoorDash said the city had shown “naked animosity” by requiring food delivery app companies to provide names, phone numbers, addresses e-mail and delivery addresses of customers to restaurants.
DoorDash said it would allow restaurants to “freely use” data they would not require from diners in person, in a “shocking and pervasive intrusion into consumer privacy.”
He also said that “the most vulnerable populations, especially undocumented clients” could be harmed if data is mismanaged and shared with immigration authorities or hate groups.
Shortly after the start of the pandemic, New York City imposed temporary fee caps of 5% and 15% on food delivery apps, which businesses were hoping to end when restaurants resume operations more. normal.
The caps cost DoorDash, Grubhub and Uber Eats hundreds of millions of dollars in revenue through July, the companies said.
DoorDash and Grubhub sued San Francisco in July over fee caps. Chicago sued the companies last month, claiming their deceptive practices mislead customers and hurt restaurants. DoorDash and Grubhub rejected Chicago’s claims.
The case is DoorDash Inc v City of New York, US District Court, Southern District of New York, No. 21-07695.
Reporting by Jonathan Stempel in New York Editing by Jonathan Oatis and Mark Potter
Our standards: Thomson Reuters Trust Principles.
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